“Our member companies are not as well-known as our competitors on the large area, but we are in no way inferior to them in terms of growth,” says Markus Dulle, CEO of the 3e Group with headquarters in Wels. The do-it-yourself chain with the sales concepts Let’s Doit, Let’s Doit Holzprofi, Bad & Co, E-Norm and IPM was able to increase sales in the previous year by 9.2 percent to 709 million euros. In 2020, the group had already achieved an increase of 12.6 percent with 314 independent specialist dealers.
As in the first, 3e also benefited from the “cocooning effect” in the second Corona year, says Dulle in an interview with the OÖNachrichten. Because more people withdrew into their own four walls and beautified their house, apartment and garden, the tool trade grew.
Unlike at the beginning of the pandemic, however, it is now more difficult to obtain all products due to the pressure on the supply chains. “We order everything we can get, and our central warehouse in Wels is still relatively well stocked,” says Dulle. However, some suppliers complained about having to wait for paint covers or plastic cassettes for cordless screwdrivers, for example. In addition to the increased transport and energy prices, the cracked supply chains are currently the biggest stumbling block for retailers.
Digitize externally and internally
Nevertheless, the 3e boss assumes that he will be able to continue the growth course in the coming years. Not only the development on the home market makes him confident, but also those abroad. The DIY group makes around a fifth of its total sales in eleven countries in southern and eastern Europe. During the crisis, people in these countries acted a little more sparingly than in Austria, but now things are leveling out again, says Dulle.
The manager from Carinthia also wants to promote the digitization of 3e. In 2019, the chain opened an omni-channel store in Wels, in which interactive sales shelves, videos and apps support employees and customers.
There are now six such stores across Austria, the youngest two of which are in Vienna-Simmering and Knittelfeld. By 2025, 20 to 25 new stores are to be built or converted to this concept.
Digital should also become more important internally at 3e. The CEO wants to standardize the various merchandise management systems of the dealers in order to become more efficient. In the future, scheduling will be equipped with artificial intelligence and automatic processes.
Finding employees remains difficult, says Dulle. Apprenticeships in retail still don’t have a good image, especially among young people. “And many want to go home for lunch on Friday and not work at all on Saturday. That doesn’t make it any easier.” 3e has around 2700 employees across Austria, 120 of them in Wels.
Source: Nachrichten
